11 stocks that will make you rich in 5-10 years

“If Paul Harvey's radio series “The Rest of the Story'' were applied to Wall Street, it would depict the sad end of many such “story'' stocks. The breakdown of a virtuous cycle of growth accompanied by revenue shortfalls is not a pretty one, with stock prices plummeting, employees with underwater options jumping ship, overzealous shareholders making margin calls, accounting fraud exposed, and lawsuits filed. , and then come full circle to the final indignity of being removed from the relevant major market indexes, which is tempting at this point. “Valuations are not considered a good story. Slow-growth or no-growth companies that trade at half or one-third of their underlying value do not attract significant investors. Hmm. I sometimes joke about stocks that don't meet the new rule of thumb for market valuation: “Earnings estimates all seem to be trading at 10 times lower earnings, whereas previously profitable companies report losses.'' It appears that all of the companies that have done so are trading at $5 per share. They wonder why such stocks would go up. Even those of us who have values ​​invested in our DNA generally prefer situations where there is a catalyst for realizing the underlying values.

Over time, this will change. At some unknown point in the future, small-cap stocks that lack exciting growth characteristics will become significantly undervalued and attract investors again. After all, the purpose of investing is not to have a great story to tell. The point of investing is to make money with limited risk. At some point, investors will abandon the Pulitzer Prize-winning story stocks and refocus on the old classics: stocks that make money, as undervaluation creates an unavoidable imbalance between risk and return. . ”

“In our view, what's notable is that the company's substantial product development cycle has slowed and management continues to expect significant operating leverage as R&D expenses are contained. Second, demand remains strong, with EV sales increasing in multiple regions and charging infrastructure being built. Third, the company reported positive adjusted growth from Q2 to Q4. We are well capitalized as we achieved EBITDA and managed our working capital needs for growth. We expect to enjoy both revenue growth and margin expansion in the coming quarters. As such, we remain positive on the stock price.”

“With eye care veteran CCO Mottiwala (former VP of Marketing Allergan Eye Care) leading the commercial division, TARS is well-positioned to develop a new category of eyelid health. 93% Demodex Blepharitis (DB) We are particularly encouraged by the market research that revealed prescribing intent for TP-03. As awareness increases, our confidence in the market potential of TP-03 is strengthened. 03 could benefit from key differences between the DB market and the dry eye disease (DED) market.Finally, we have not currently evaluated the TARS pipeline, but we believe that We believe it shouldn't and that there are multiple opportunities for growth and monetization.”

“Given the rising interest rate landscape, it is perhaps not surprising that utility exposure has performed poorly this year. We should have hedged our risk sooner by shorting utility ETFs, but we have already lost a lot of our exposure. We didn't do that until the third quarter, when the damage was occurring. As noted above, our utility exposure was significantly lower in terms of negative portfolio impact through both the third quarter and the year-to-date period. , second only to materials exposure, which is primarily driven by investments in . AES Co., Ltd. (NYSE:AES), which is down about 26% in the third quarter and 47% year-to-date. Our other utility exposures have increased throughout the year, including the short position established in the third quarter as discussed above, which probably should have been on the books throughout the year.

We believe, rightly or wrongly, that the decline in AES is entirely due to the interest rate environment. Chart overlays are always tricky and shouldn't be read too much into, but to easily check the claim, let's invert the common 10-year US Treasury move-in rate and overlay it with the AES stock price. YTD, I get the following result:..” (Click here to read the full article)

“Long-term ownership charter and Comcast Corporation (NASDAQ:CMCSA) delivered better-than-expected second-quarter results. Their stable recurring revenue streams and undemanding valuations have paid off in the current environment. Its cable multiple has compressed over the past 24 months due to concerns about increased competition from fixed wireless and fiber optic providers in its core broadband business. Fiber optics remains a competitive alternative to cable broadband in the long term, but high upfront investments and significantly higher capital costs have slowed its build-out than previously expected. Fixed wireless also continues to gain momentum, especially in rural markets, but share growth appears to be slowing. At the same time, both Comcast and Charter are leveraging virtual mobile network operator agreements with Verizon to gain wireless market share while expanding into rural and neighboring markets. We believe both cable companies are well-positioned to continue to grow while generating substantial free cash flow. We added services to Comcast during the quarter. ”

“Seven great things underpin the performance of the S&P 500: Tesla Inc. (NASDAQ:TSLA), which now accounts for almost 30% of the S&P 500's market capitalization. At least three of the seven stocks pose elevated downside risks, already plagued by high penetration rates, weak end-markets, competitive risks and high valuations. They are surprisingly resilient to the possibility of rising interest rates and slowing growth. Small- and mid-cap stocks, on the other hand, have been systematically penalized by recession fears and continue to price in that eventuality even as the likelihood of a significant improvement increases. Currently, it is relatively easy to find attractive investments in this area. ”